Mediation, Arbitration, and Negotiation

Mediation is an alternative dispute resolution (ADR) mechanism to resolve disputes without the necessity of litigation or continued litigation. Mediation is a process whereby the parties attempt to reach an amicable settlement of their dispute with the assistance of a mediator, who is a neutral and who does not have a stake in the outcome of the dispute. 

Generally, the mediation process is an entirely consensual one in which the parties attempt to settle their dispute with the assistance of a neutral third party, namely the mediator, so that the needs and interests of the parties are met. The mediator does not have the authority to impose on the parties a solution to the dispute, but rather the mediator assists the parties, through discussions and negotiations, to reach a settlement of their dispute.

Mediation is an efficient and cost-effective dispute settlement mechanism that allows the parties, with the assistance of the mediator, to reach a settlement, considering their interests and needs and avoiding a win-lose outcome. Mediation is a confidential, flexible, non-formal, and non-adversarial process for resolving disputes, saving the parties time, money, and stress. Unless otherwise agreed by the parties, all information related to the mediation is kept confidential, except where disclosure is required by law or for the purpose of implementation or enforcement of a settlement agreement.

Mediation may be used for solving a broad range of disputes. Its use results in significant benefits such as the recovery of monetary damages, specific performance, facilitating the administration of transactions, and a reduction in the instances where a dispute leads to the termination of a relationship, commercial or otherwise. Mediation may be used as a standalone method of dispute resolution or to complement other methods of dispute resolution, such as arbitration or negotiation.

Arbitration involves a process whereby the parties submit their dispute to an arbitrator, who is a third-

party neutral, for a binding decision on the parties. In other words, arbitration is where the parties

entrust the dispute resolution process to an arbitrator who renders a binding decision upon the parties.

Like mediation, it is confidential, efficient, and cost-effective in comparison to litigation. Arbitration

awards are generally enforceable domestically and internationally. This method of dispute resolution

contributes to harmonious business relationships and promotes business and other endeavors, given

that arbitration is generally less confrontational and adversarial compared to litigation.

Negotiation is a process used to resolve disputes or to obtain certain results, a specific outcome, or

benefits from the other party. Negotiation may be used alone or in conjunction with mediation and

arbitration. A third party may assist the disputants, or they may conduct the negotiations without the

assistance of a third party.